Jewell-Rung was a Canadian corporation that imported and sold men’s clothing at wholesale. Haddad was a New York corporation that manufactured and sold men’s clothing under the ‘‘Lakeland’’ label. The companies agreed that Haddad would sell 2,325 Lakeland garments to Jewell-Rung, for $250,000. Jewell-Rung began to take orders for the garments from its Canadian customers. Jewell-Rung had orders for about 372 garments when it learned that Haddad planned to allow another company, Olympic, the exclusive Canadian right to manufacture and sell Lakeland garments. Jewell-Rung sued Haddad for its lost profits. Haddad moved for summary judgment, claiming that Jewell-Rung could not recover lost profits because it had not ‘‘covered.’’ Is Haddad right? Why might Jewell-Rung not have covered?
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